Wow, you really are moving the story forward. You already introduced a villain and showed a sky full of dragons. I would of liked to see the dragons eat the guards up after "Demon Thunder". Good job explaining the Dragons immunity to magic.

"Raiko continued to stare at him with her usual emotionless expression." Where as I understand what your trying to say, I just don't think it fits. You might want to take out "her usual" here. It might be true but it seems to close to when she Yells at Kane to "GET OUT OF MY ROOM!" It could be the cap locks but I don't picture her face the least bit lack of Emotion. I'm not saying take it out of the rest of the text just here.

OK as you can probably tell I have no major complaints for chapter 2. I did feel the first chapter was a little better but this one had less errors.

I'll be really busy so it might be a while before I review the rest of Blue Moon. But I plan to,